Murray & Roberts — 2013 Macquarie Construction Conference
19 slides from Murray & Roberts's conference presentation, Jun 4, 2013
Slide 1: 2013 Macquarie Construction Conference: Creating Value Through a New Strategic Future
2013 MACQUARIE CONSTRUCTION CONFERENCE CREATING VALUE THROUGH A NEW STRATEGIC FUTURE 04 June 2013 RECOVERY & GROWTH
Slide 2: Safety, Capabilities, Order Book, Strategy and Shareholders
Order Book and Key Investment Safety Our Capabilities Margins and Performance Market Prospects Aspirations Strategy Return to Strategy gy Strategy gy Shareholders Phase 3 : FY15 Phase 1 : FY12 Phase 2 : FY13/14 and Beyond RECOVERY & GROWTH 2
Slide 3: Safety performance: six months to 31 December 2012
SIX MONTHS TO 31 DECEMBER 2012 18 4.65 4 65 5.00 16 4.50 14 4.00 3.05 3.50 12 2.86 3.00 10 2.44 2.50 8 2.07 2.00 6 1 28 1.28 1 0 1.50 1.14 4 0.85 1.00 2 0 50 0.50 10 11 16 9 9 12 4 0 0 0.00 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 2013 H1 Fatalities L.T.I.F.R. (per 1 million man hours) Targe
Slide 4: Companies, geography, segments and value chain
Companies Geography Segments Value chain Contracts • MUR Construction • REGIONAL • Metals & • Project Dev. & Design ** • MUR Marine - Africa Minerals(surface) • Planning and Eng. Construction Africa • MUR Middle East - Middle East • Energy,Industrial • Construction works 104 and Middle East • Conces
Slide 5: Construction Africa and Middle East (Regional Platform)
Construction Africa and Middle East (Regional Platform) • Project: Portside • Project: Medupi Power Station • Location: Cape Town, South Africa • Location: Lephalale, South Africa • Client: Eris Property Group and Old Mutual Property • Client: Eskom and Hitachi Power Africa • Capability: Building a
Slide 6: Engineering Africa (Regional Platform)
Engineering Africa (Regional Platform) • Project: Pilanesberg Platinum Concentrator • Project: Hillendale to Fairbreeze Relocation • Location: Pilanesberg, South Africa • Location: KwaZulu-Natal, South Africa • Client: Boynton Investments (DRA Mineral Projects) • Client: Exxaro • Capability: Detaili
Slide 7: Construction Global Underground Mining (International Platform)
Construction Global Underground Mining (International Platform) • Project: Diavik Diamond Mine • Project: Picadilly Project • Location: Northwest Territories, Canada • Location: New Brunswick, Canada • Client: Diavik Diamond Mines Inc. • Client: PotashCorp • Capability: Underground decline and drift
Slide 8: Construction Australasia Oil & Gas and Minerals (International Platform)
Construction Australasia Oil & Gas and Minerals (International Platform) • Project: Gorgon Downstream LNG • Project: Pluto LNG Jetty • Location: Barrow Island, Western Australia • Location: Karratha, Western Australia • Client: Kellogg Joint Venture Gorgon (KJVG) • Client: Woodside Energy Limited •
Slide 9: Order book: six months to December 2012
SIX MONTHS TO 31 DECEMBER 2012 Order book % split Order book Order book Rbn Rbn FY Time Distribution SADC Int. Dec 2012 Jun 2012 2013 3.2 Construction Africa 80 20 8.6 9.0 2014 4.6 and Middle East >2014 08 0.8 2013 2.9 Construction Global 50 50 9.1 8.8 2014 3.4 Underground Mining >2014 28 2.8 Constr
Slide 10: Market prospects by platform
• Will in the short term be marginally profitable Construction Africa • Participation in SA Government’s major infrastructure development programme (roads, dams, power stations, (roads dams lines, sea ports stations railway lines ports, schools and hospitals) and Middle East • Well positioned to tak
Slide 11: Performance criteria, methods and target ranges
Criteria Method Range EBIT Margin Revenue 5% - 7.5% Total Interest Bearing Debt Gearing Ordinary Shareholders Equity 20% - 25% 17.5% Return on Equity Net Profit Attributable to Ordinary Shareholders Average Ordinary Shareholders Equity through (ROE) cycle Return on Invested WACC (Taxed EBIT + Income
Slide 12: Three strategy phases: Recovery, Growth, New Strategic Future
Phase 1 – FY2012 – The Recovery year • No structural strategic g changes g • Address liquidity q y challenge g • Group alignment – Purpose, values & vision • Operational performance and culture shift • New structures: company and management • Develop a growth strategy Phase 2 – FY2013/14 – The two g
Slide 13: The Recovery Year and current family portrait
THE RECOVERY YEAR & CURRENT FAMILY PORTRAIT During the Recovery Year Murray & Roberts has defined its position in the market with a ‘Family Portrait’ which includes 5 operating platforms A Group of world class companies and brands aligned to the same purpose and vision, and guided by the same set of
Slide 14: The two growth years: disposals and acquisitions
THE TWO GROWTH YEARS Continue to build on Phase 1, implement Phase 2 and develop Phase 3 Phase 2 is primarily about disposals and acquisitions with the objective to • Enhance shareholder value and resume dividend payments • Return focus to core competence p of Engineering g g and Construction • Alig
Slide 15: Strategic objectives - all in progress
STRATEGIC OBJECTIVES - ALL IN PROGRESS • Enhance shareholder value – rerating and growth beyond • Resume dividend payments • Selective market segment re-positioning in support of long term growth objective • Increase offshore revenue base in support of long term growth objective • Deliver operationa
Slide 16: Return to profitability earnings trend
RETURN TO PROFITABILITY EARNINGS TREND Rm Cents 1 500 300 Recovery Growth 175 160 200 1 000 64 ? 100 500 84 0 576 522 -52 52 0 178 -636 -1 099 -528 -208 -100 -162 -500 -194 -200 -1 000 -334 -300 -1 500 -400 H1 2010 H2 2010 H1 2011 H2 2011 H1 2012 H2 2012 H1 2013 H2 2013 Attributable earnings Discont
Slide 17: At the end of the growth phase
AT THE END OF THE GROWTH PHASE Murray & Roberts will have re-defined its position in the market with a ‘Family y Portrait’ which reflects only y 4 operating p g platforms p A Group of world class companies and brands aligned to the same purpose and vision, and guided by the same set of values with a
Slide 18: Implications for the new strategic future
IMPLICATIONS FOR THE NEW STRATEGIC FUTURE A business with increasing international focus Group to be restructured accordingly - mainly in an international structure and a regional structure • Regional : Construction Africa & Middle East; Focus on 4 strategic platforms Engineering Africa • Internatio
Slide 19: 2013 Macquarie Construction Conference: Creating Value Through a New Strategic Future
2013 MACQUARIE CONSTRUCTION CONFERENCE CREATING VALUE THROUGH A NEW STRATEGIC FUTURE 04 June 2013 RECOVERY & GROWTH
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